Updates

20/10/21 – Employee – Superannuation

From 1 November 2021, if a new employee does not choose a specific fund, their employer may need to request the employee’s ‘stapled super fund’ details from the ATO.

A stapled super fund is an existing account which is linked (or ‘stapled’) to an individual employee, so it follows them as they change jobs.

Businesses will be able to request stapled super fund details for new employees using ‘Online services for business’, or by asking their registered tax or BAS agent to do this for them.

Single Touch Payroll – Phase 2

Single Touch Payroll (known as STP Phase 2) will be expanding – from 1 January 2022, employers will need to report additional payroll information in their STP reports.

This includes:

* detail on gross amounts (including separate reporting of paid leave, allowances, overtime, directors’ fees and salary sacrifice amounts);
* employment and taxation conditions (including information from the TFN declaration); and
* income types (eg salary and wages, working holiday maker income, foreign employment income).

14/09/21 – Mornington Peninsula Shire – Grants Program

Exciting news – the long awaited grants program has been released. Please find the below links for information and the specifics of each grant.

Please do not hesitate to reach out if you have any questions about anything. Rosemary Spiteri the Business Liaison Officer at the Shire will do her very best to assist you. Her number is 03 5950 1466 / 0422 781 818 or email her on rosemary.spiteri@mornpen.vic.gov.au

COVID Recovery
Business Grants
Grants and funding

3/08/21 – New Victorian Business Support Package

Please follow the link below for more information.

https://www.premier.vic.gov.au/victorian-business-support-package

1/06/21 – Circuit Breaker Business Support Package

Please follow the link below for more information.

https://business.vic.gov.au/grants-and-programs/circuit-breaker-business-support-package

25/05/21 – Changes to STP reporting concessions from 1 July 2021

In addition, a quarterly STP reporting option applies to micro employers (four or fewer employees). These concessions will end on 30 June 2021.

The STP reporting changes that apply for these employers from 1 July 2021 are outlined below.

Closely held payees (small employers)

A ‘closely held payee’ is an individual who is directly related to the entity from which they receive payments. For example, this could include family members of a family business, directors or shareholders of a company and beneficiaries of a trust.

Payments to such payees can be reported via STP (from 1 July 2021) using any of the following options:

1. Report actual payments on or before the date of payment.
2. Report actual payments quarterly on or before the due date for the employer’s quarterly activity statements.
3. Report a reasonable estimate quarterly on or before the due date for the employer’s quarterly activity statements. Note that consequences may apply for employers that under-estimate amounts reported for closely held payees.

Small employers with only closely held payees have up until the due date of the payee’s tax return to make a finalisation declaration. Employers will need to speak with these payees about when their individual income tax return is due.

Micro employers

From 1 July 2021, the quarterly reporting concession will only be considered for eligible micro employers experiencing ‘exceptional circumstances’.

Common examples of when the ATO would generally consider it to be fair and reasonable to grant a deferral due to exceptional or unforeseen circumstances include natural disasters, other disasters or events, serious illness or death and it will consider any other unique circumstances on a case-by-case basis.

Additionally, ‘exceptional circumstances’ for access to the STP quarterly reporting concession from 1 July 2021 may include where a micro employer has:

* seasonal or intermittent workers; or
* no or unreliable internet connection.

It should be noted that registered agents must apply for this concession and lodge STP reports, quarterly, on behalf of their eligible micro employer clients.

The STP reports are due the same day as the employer’s quarterly activity statements. However, if an employer prefers to report monthly, the STP reports must be lodged on or before the 21st day of the following month and finalisation declarations will need to be submitted by 14 July each year.

04/05/21 – FBT rates and thresholds for the 2021/22 FBT year

The ATO has updated its webpage containing the fringe benefits tax (‘FBT’) rates and thresholds for the 2017/18 to 2021/22 FBT years.

Two amounts that were not previously announces for the 2021/22 FBT year are:

* The FBT record keeping exemption is $8,923 (up from $8,853 for the 2020/21 FBT year); and
* The statutory or benchmark interest rate is 4.52% (down from 4.80% for the 2020/21 FBT year).

The ATO also separately released two taxation determinations setting out further rates and thresholds for the FBT year commencing on 1 April 2021, being:

* Motor vehicle (other than a car) – cents per kilometer rate; and
* Reasonable food and drink amounts for employees living away from home.

23/04/21 – Fringe Benefits Tax

What is fringe benefit?

A fringe benefit is a ‘payment’ to an employee or an associate, but in a different form to salary or wages. A benefit might be as simple as hosting a work Christmas party, providing car parking, using a work vehicle, or providing the goods or services of the business at a reduced rate to what the public pay. An associate can be someone related to you such as a spouse, child or even a friend.

If your business is not already registered for FBT, it’s important to understand if fringe benefits have been provided. Generally, the ATO will look closely at unregistered employers and where there are mismatches in data. The FBT year ends on 31 March.

What is exempt from FBT?

Certain benefits are excluded from the FBT rules if they are provided primarily for use in the
employee’s employment. These include:

* Portable electronic devices (e.g., laptop, ipad, printers, GPS, etc.,). Larger businesses are limited to the purchase or reimbursement of one portable electronic device for each employee per FBT year;

* A handbag, briefcase or satchel to carry items you are required to use and carry for work, such as laptops, tablets, work papers or diaries. However if you are using these bags for a mix of personal and work use, then the use needs to be apportioned and will not be fully exempt from FBT.

* Tools of trade. COVID-19 & FBT The ATO has changed how it will approach FBT compliance this year because of the impact of COVID-19 on work patterns and conditions.

How will COVID-19 impact FBT?

The ATO has changed how it will approach FBT compliance this year because of the impact of COVID-19 on work patterns and conditions. In summary these are:

Emergency assistance such as flights and accommodation – emergency assistance to provide immediate relief to employees because the employee is at risk of being adversely affected by COVID-19 will generally not be subject to FBT.

Health care – Providing flu vaccinations to employees is generally exempt from FBT because it is work related preventative health care.

Company cars – a company car garaged at an employee’s home will generally attract FBT.

Logbooks – COVID-19 is likely to have impacted on driving patterns and the ATO have made some concessions where the 12 week log book period was interrupted.

Not-for-profit salary packaging – For the FBT year ending 31 March 2021, the ATO has stated that they will not look into these arrangements where meals are provided by a supplier that was authorised as a meal entertainment provider as at 1 March 2020.

Cancellation fees – non-refundable costs for cancelled events are exempt from FBT unless the employee paid for the event themselves and was reimbursed by you.

ATO ‘red flags’

One of the easiest ways for the ATO to pick up on problem areas is where there are mismatches in the information provided to the ATO. Common problem areas include:

Entertainment deductions with no corresponding fringe benefit – Benefits provided to a client are not subject to FBT and minor benefits provided to employees (i.e., value of less than $300) on an infrequent and irregular basis are generally exempt from FBT. However, no deductions should be claimed for the entertainment and no GST credits would normally be available either.

Employee contributions reduce fringe benefits tax but not recognised in income tax return – A corresponding amount needs to be recognised in the income tax return of the employer.

07/04/21 – Paper PAYG and GST quarterly instalment notices

The ATO has previously advised that it will no longer issue paper activity statements after electronic lodgement. Instead, electronic activity statements will be available for access online, three to four days after the activity statement is generated. As part of its digital improvement program, the ATO stopped issuing paper quarterly PAYG and GST instalment notices (forms R, S & T), where taxpayers had a digital preference on ATO systems. The September 2020 notice was the last one issued to these taxpayers.

However, noting this can be an issue for some clients, the ATO will issue paper PAYG and GST quarterly instalment notices starting with the March 2021 quarterly notices.

The ATO has advised it will continue to work with the tax profession to develop a solution for the PAYG and GST instalment notices that is workable for registered agents and their clients.

02/01/21

Before you spend or invest in anything – remember to make sure it’s safe & sound.

https://www.smh.com.au/business/consumer-affairs/wealth-creation-guru-allegedly-used-banned-lawyer-father-in-1-2-million-mehajer-loan-20210129-p56xox.html

22/09/20 – Business Support

Please follow the link below for information regarding business support, financial support (including the 3rd round of grants) and workplace information.

https://www.business.vic.gov.au/coronavirus-covid-19/business-support/coronavirus-business-information

17/09/20 – Jobkeeper 2.0 Rules Released – 15 September 2020

For the period 28/9/20 to 3/1/21 eligible employees who worked 80 hours or more in the 28 day period before 1/3/20 or 1/7/20 will receive $1200 per fortnight or if less than, $750 per fortnight.

After 4/1/21 to 28/3/21, this will change to $1,000 per fortnight or $$650 per fortnight respectively.

Eligible business participants must evidence the same for the month of February 2020.

Decline in turnover test is the September 2020 quarter and then will be December 2020 quarter for the second phase. There are alternative test provisions.

Link to legislation below:

https://www.legislation.gov.au/Details/F2020L01165

10/09/20 – RUOK DAY

Remember to ask your friends and family if they are OK! Follow the link below for useful tips. Stay Safe, Happy & Healthy everyone!

https://www.ruok.org.au/join-r-u-ok-day

10/07/20 – Business Support Fund expansion

A media release has been issued today by the Victorian Treasurer, Tim Pallas.
Among other measures the Government has announced it will expand the Business Support Fund and provide more
than 80,000 eligible businesses with a new $5,000 grant to support them through the renewed restrictions.

Businesses will also benefit from an extended and expanded payroll tax deferral. Eligible businesses with payrolls up
to $10 million can defer their liabilities for the first half of the 2020/21 financial year.

You can register your interest for the support program at the first link below.
To view the media release please click the second link below. Further details as they come to hand.

https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/expanded-business-support-fund
http://d31hzlhk6di2h5.cloudfront.net/20200709/32/d2/3f/64/0f90d5325fe368d41b5c9ec0/200710-More-Survival-Support-For-Victorian-Businesses-1.pdf

30/04/20 – Managing your cashflow effectively

If you need it, there is a SUPER ‘amnesty’ for employers: – 6 month window to 7th Sept 2020 to disclose, lodge and pay unpaid super payments to their employees
– Employers can claim deductions and not incur admin charges or penalties during this amnesty.

Visit the below website for further information.

https://www.ato.gov.au/Business/Business-bulletins-newsroom/Employer-information/Superannuation-guarantee-amnesty/

09/04/20 – Commercial Leases

Code of Conduct: announced last night. Click on the link below for more information.

https://www.pm.gov.au/sites/default/files/files/national-cabinet-mandatory-code-ofconduct-sme-commercial-leasing-principles.pdf

07/04/20 – Commercial Landlords Who Support Tenants, get Bank Support

Please click on the below link for more information.

https://www.ausbanking.org.au/banks-to-help-commercial-landlords-who-help-tenants/

02/04/20 – Support for Individuals

Please follow the link below for more information.

https://www.ato.gov.au/General/COVID-19/In-detail/COVID-19-frequently-asked-questions/?anchor=Individuals#Individuals

02/04/20 – Support for households

Treasury Update: Please follow the link below for more information.

https://treasury.gov.au/coronavirus/households

02/04/20 – Cashflow boost of $10-$50k

Available via BAS lodgement – see eligibility criteria from the ATO website on the below link.
If you need guidance on managing your business, we can assist.

https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Boosting-cash-flow-for-employers/

31/03/20 COVID-19 ‘JOBKEEPER’ economic plan

The Federal Government announced the ‘Jobkeeper’ economic plan as of yesterday afternoon. Keeping the connection between employers and employees. Key details of the allowance are: · Minimum $1500 a fortnight, per employee.
· It will be paid to business to keep employees on their payroll.
· It will be backdated to 1 March 2020.
· Businesses will have to prove they are paying it to their employees.
· It does not include superannuation.
· It will be delivered through existing systems at the ATO.
· It will last for at least six months.
Businesses without employees
Businesses without employees, such as the self-employed, will need to provide an ABN for their business, nominate an individual to receive the payment and provide that individual’s TFN and provide a declarations as to recent business activity.
People who are self-employed will need to provide a monthly update to the ATO to declare their continued eligibility for the payments. Payment will be made monthly to the individual’s bank account.
Further details for the self-employed will be provided on ato.gov.au.
If you have lost your job due to the coronavirus, please contact your employer to discuss this plan to be reinstated in your job. This will allow for you to keep being paid from your employer without the need for centrelink’s jobseeker payment, therefore keeping you in a job for when this crisis is over.
They are looking at further details of this allowance and will provide a more detailed update asap.
You will need to register at the below link.

https://www.ato.gov.au/general/gen/JobKeeper-payment/

30/03/20 – Covid-19 Update: Small Business Grants

30,000 grants of $10,000 each, available to eligible businesses affected by the social distancing restrictions.
Register at the following link. Need help – holler!

https://www.business.vic.gov.au/disputes-disasters-and-succession-planning/illness-and-business-management-plan/coronavirus-business-support

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